If you're one of the 429,600 property managers in the United States, you're likely always looking for ways to make your properties more profitable.
One of the best ways to do this is by changing your lease terms to reflect a rent increase or more favorable landlord terms. Unfortunately, when you do this, you stand the risk of losing your current tenants.
That's why it's so important to know all about lease negotiation and renegotiation strategies for your Hammond properties. In this guide, we'll be going over four tips that will help you keep the tenants you have while changing the terms of their lease.
1. Research the Local Market
Real estate market trends can change on a yearly or even monthly basis. It's vital to stay attuned to the neighborhood demands where your properties are located.
For example, if your property is located in a competitive real estate market, you can use that as an excuse to charge more in your lease agreement.
On the other hand, if demand is down, you might want to think twice before drastically changing the terms of your lease.
2. Communicate Clearly
When it comes to negotiating a lease agreement change, the last thing you want to do is take your tenant by surprise weeks before their lease renewal. You should communicate a desire for a lease change months in advance.
It's also important to establish an open communication style. Aim to build strong tenant relationships by being transparent in terms of why you're changing the lease. Then address any problems they might have.
3. Find the Strengths of Your Property
To justify a lease change, it's important to remind the tenant of the property's strengths. This might be the convenient location of the property. Or it could be the many amenities that come with the place.
Historic features, security, green energy upgrades, and high property value demand in the area are some other things you can bring up. This will remind them what a good property they're staying at.
4. Have a Counteroffer Ready
As we mentioned here, one of the most important negotiating tips is to be flexible. That means having a counteroffer ready for the negotiation. Some shy or passive tenants might be fine with accepting new terms or rental increases.
However, most will likely push back a little. It's important to not accept the first thing they ask for, whether that's decreasing the price or including something on the lease.
Instead, have a counteroffer prepared to show them you're serious about negotiating. Make sure to stick to this as the final offer to show that you won't budge any further.
Need Help With Lease Negotiation and Renegotiation? Contact PMI NWI
We hope this guide helped you learn more about lease negotiation and renegotiation. Here at PMI NWI, we know that these types of negotiations can often lead to conflict.
This causes many property managers to avoid them entirely. Luckily, we're here to take the stress off your plate.
In addition to providing a variety of other services, we can negotiate with your Hammond tenants when you need to update your lease. So if you're ready to make your life easier, get in touch with us today.
